BK Group Plc Investor Presentation

Page 1 Agenda

1. Key Investment Highlights

2. Country Overview Information

3. Banking Sector Overview

4. Bank Overview

5. Corporate Governance

6. Business Overview

7. Review of Financial Performance

8. Strategic Outlook

9. Contact Information

Page2 2 Key Investment Highlights

1. Best Bank in 2013, Politically stable country with sound governance 2015 & 2016 Very attractive demographic profile: population of 12 Million Sound Macro Robust economic growth averaging 8% pa in the last 5 years, expecting a sustainable high GDP growth into 2020 Fundamentals th 2. Best East African Bank 2012 Moderate inflation with rate of 0.8% as at 30 June 2019 & 2015,2016 The 2018 World Bank Doing Business Report ranked Rwanda as the 29th out of 190 economies in terms of ease of doing business and 2nd in Africa

Well regulated banking sector: fairly conservative regulator relative to other regulators in the EAC Significant 3. Bank of the Year 2009- Significant headroom for growth given under-banked and excluded population 2012,2014,2015,2016 Banking Sector Potential Number of financially excluded population reduced from 28% in 2012 to only 11% in 2016 Total assets/GDP of 47.6% as at 31st, March 2019.

Strong Market positioning & sustainable leadership 4. Best Bank in Rwanda 2009- Total assets FRw 893.2 billion, 27.5% market share as at June 30th, 2019; 2014,2016 Market th Leadership Net FRw 650.2 billion, 29.2% market share as at June 30 , 2019; Customer Deposits FRw 551.7 billion, 26.8% market share as at June 30th, 2019; Shareholders’ Equity FRw 204.0 billion, 36.2% market share as at June 30th, 2019. 5. Best African Listing 2011

6. AA-/A1+ Credit Rating Conservative Relatively high capital adequacy ratios since 2010 averaging > 20% Business Manageable level of non-performing 6.4% of gross loans as at 30th June 2019 Model The rating reflects the Bank’s established Liquid assets holding of 31.2% (minimum requirement 20%) domestic franchise value, strong capital position, its systemic importance, strong asset quality and financial performance. Experienced Management team with significant banking sector experience Management Complemented by an experienced and diversified Board of Directors Team Track record of producing stellar results 7. Best Financial Reporting Company Rwanda 2012 & Profitable Robust asset growth at a CAGR of 16.6% (2014 - 1H 2019) - FRw 893.2 billion as 30th June 2019 2015 Growth ROAA ranging from 3.3% - 4.0% between 2014 and 1H 2019

Page3 3 COUNTRY OVERVIEW INFORMATION

Page4 4 Rwanda - Country Profile

National Facts Business Environment

Area 26,338 sq km Population 12 million Ranked Second after Mauritius as the best destination to do business in Official Languages Kinyarwanda, French, English Africa in the World Bank 2018 Doing Business Report. Capital Rwanda has implemented over 22 business regulation reforms in the (FRw) 898.3 FRw = 1 US$ as of areas measured by the World Bank Doing Business Index. Today, Currency 28th June 2019 entrepreneurs can register a new business online in 6 hours. Credit Rating B+ S&P Global Ratings August 2019 Nominal GDP 2018 US $10 Bn Rwanda maintains its position as East Africa’s most competitive economy Nominal GDP Per Capita 2018 US $800 and second in Africa by Global Competitiveness Index Report 2017/18. Nominal GDP 2019P US $10 Bn Rwanda has championed the establishment of the Single Africa Nominal GDP Per Capita 2019P US $800 Air Transport. To this effect, the construction

Macro Economic Indicators of Bugesera International Airport has been prioritized.​ Other key projects, are the construction of four ports on Lake Real GDP Growth rate - Q1 2019 8.4% Kivu, expansion and support to RwandAir operations, Hakan Peat Power Real GDP Growth rate - 2020P 8.8% Plant, promoting MICE tourism by attracting over 140 international Inflation Rate - Q2 2019 0.8% events and conferences, and improving and sustaining a quality road Private Sector Growth - 2019P 29.5% network throughout the country. Private Sector Credit % GDP - 2019P 20.2% Net External Debt %GDP - 2019P 11.8% Currency Depreciation against USD June 2019 2.2%

Foreign Reserves 2018 4-4.5 Months of Imports

Source: MINECOFIN, BNR, NISR, WEF, IMF, S&P Report

Page5 5 Sound Macro Fundamentals

GDP per Capita continues to grow Population Pyramid for Rwanda

Healthy GDP growth with moderating inflation

60% of the population is under 24 years. 93% of the population is under 54 years. 2.4% of the population over 65 years.

Source: Finscope Rwanda Report Source: Ministry of Finance and Economic Planning, S&P Rating, IMF

Page6 6 Macroeconomic Indicators

GDP Breakdown By Economic Activity Q1 2019 Trade Structure

Taxes less Rwanda’s exports are dominated by coffee, tea and minerals (tin, Subsidies on coltan and wolfram). products , 7% The country remains a net importer. Major imports include fuel and oils, intermediary goods especially construction materials, consumer goods, and capital goods driven by ongoing Agriculture, 28% infrastructure projects. Other services, 36% Other services include Real estate activities 8%, administration Industry, 17% 10%, financial service 3% to mention but a few “Made in Rwanda” has sought to improve the perceptions of Rwandan products within Rwanda, promote nascent industries, Trade and Transport, 12% and boost the productivity of exporting sectors.

Source: BNR Monetary Policy Statement, NISR, International Growth Centre/MINEACOM Trade Deficit as a % of GDP Current Account Deficit as a % of GDP

Source: BNR, IMF,

Page7 7 Review of the Macro Economic Environment

Macro Economic Review Q1 2019 Inflationary Environment

In the First quarter of 2019, GDP at current market prices was estimated to be Frw 2.1 trillion, up from Frw 2.0 trillion in Q1 2018. In this quarter, services sector contributed 48 percent of GDP while agriculture sector contributed 28 percent of the GDP. Industry sector contributed 17 percent of the GDP and 7 percent was attributed to adjustment for taxes and subsidies on products

The industry sector grew by 18 percent and contributed 2.9 percentage points to overall GDP growth. The growth in industry sector was mainly attributed to growth of 30 percent and 8 percent in construction and manufacturing activities respectively. Mining & quarrying activities increased by 12% boosted by quarrying activities which increased by 20%. Within manufacturing, Beverages and Tobacco increased by 9 Exchange Rate Developments percent, Wood & paper; printing by 38%, Textiles clothes and leather goods by 15 percent. In addition production of construction materials such as non-metallic mineral products increased by 21 percent and metallic products by 11%.

The service sector grew by 8 percent and contributed 3.7 percentage points to overall GDP growth. The growth in Service sector was due to growth of several activities. Within this sector, wholesale and retail trade increased by 7 percent due to an increase in tradable manufactured products; transport activities increased by 11 percent boosted by air transport that increased by 21 percent, increased by 14 percent and Professional scientific and technical activities by 25%. Source: National Institute of Statistics of Rwanda, BNR Monetary Policy & Research Department African Economic outlook

Page8 8 BANKING SECTOR OVERVIEW

Page9 9 Significant Banking Sector Potential

Banking Assets/GDP Banking Assets Per Capita5 Large Unbanked Population (US$) Economy is moving away from being cash-based through the various financial inclusion initiatives being undertaken by financial institutions including the launch of agency banking and mobile money transfer services. Approximately 70% of the population have or use financial products or mechanisms including those offered by non- bank formal financial institutions such as SACCOs

Source: Finscope Rwanda Prudential Regulations CAR (Tier One) 12.5%

Total CAR 15%

Liquidity Coverage Ratio > 100%

Cash Reserve Ratio 5% of total deposits

(1) Source: Exotic Frontier Equities (2) Source: Monetary Policy Statement Lending in foreign currency Restricted to legal (3) Source: Population stats by World Bank entities - exporters or non residents with FX inflows

10Page 10 Banking Sector Overview

Rwanda Banking System Total Assets Interest Rate Analysis

Source: BNR Supervision Department Banking Sector Review Recent Regulatory Reforms To Improve Access To Credit

Total assets of the industry registered annual growth rate of 5.2% in H1, from 3.2 trillion in December 2018 to FRw 3.3 trillion in June 2019.

The capital adequacy ratio (CAR) stood at 24.1% in March 2019; well above Basel committee benchmark of 12.5% and the BNR regulatory minimum requirement of 15%

Profitability indicators in June 2019 stood at 1.6% and 9.3% for Return on assets (ROA) and return on equity (ROE).

The asset quality of the industry is generally improving; non-performing ratio (NPL ratio) stood at 5.6% as at June 2019.

Source : BNR Supervision Department

11Page 11 Timeline of Foreign Investment In The Rwandan Banking Sector

80% stake in BCR I &M Bank acquires 40% stake in Cogebanque 80% stake in BCR

2004 2007 2008 2009 2010 2011 2012 2014 2015 2016 2017

30% 70% stake in stake in 90% stake in CBA Acquires 100% Agaseke Bank C Rwanda BPR FINA Bank

2014 2015 2016 2017 2018 1H 2019

Bank of Kigali Market Share by Total Assets 26.8% 26.3% 26.8% 27.1% 28.4% 27.5%

* Market share among banking sector

12Page 12 Market Share Dynamics

Market Share for Banking Sector Bank of Kigali vs. Banking Sector’ Growth, CAGR 2014 - 1H 2019

Selected Indicators 1H 2019 Market Share for Commercial Banks 1H 2019

Source: BNR, Published results for commercial banks

13Page 13 Strong Market Leadership - 1H 2019

1 33.8% 42.9% 32.4% 47.2%

2 12.2% 11.6% 11.3% 9.6%

3 11.5% 10.7% 11.2% 9.0%

4 10.3% 9.5% 11.2% 8.4%

5 8.3% 8.0% 9.2% 6.4%

6 7.8% 8.0% 7.3% 5.5%

7 5.8% 2.6% 7.1% 4.9%

8 3.9% 2.2% 4.9% 3.3%

2.3% 9 3.5% 1.5% 4.4%

1.9% 1.1% 1.5% 10 2.0%

11 1.0% 0.7% 0.8% 1.4%

Source: 1H 2019 Published Results

14Page 14 BANK OVERVIEW

15Page 15 Background and History

The Group raises US$62.5 mln Signed lines of credit Bank of Kigali Ltd $70 million Initial Public with: changes its name to BK through a Rights Established in Offering of • PTA Bank- US$ 10 Supervisory Board Group PLC Issue in order to 1966 as a JV 45% of its mln enhanced & Increase Auth. Share finance various with Belgolaise shares and • OFID- US$ 10 mln internationalized capital by FRw 3.5bn projects S.A listing on the • EADB- US $10 mln RSE

1966 2006 2009 2011 2013 2015 2016 2017 2018 2019

AFD loan signed: Government of New strategy ‒ US$ 20 mln • Shelter Afrique • Launch of Rwanda acquired focusing on the BK Group Plc ‒ 10 years loan $10 mln BK General Launch of 50% stake from universal banking cross lists on EIB Loan £5 mln • Launch of BK Insurance BK Belgolaise business model and the Nairobi AfDB loan Registrars Ltd Capital becoming 100% profitable growth Securities signed: • Launch of • Launch of Ltd shareholder adopted Exchange -US$12 mln Mastercard BK TecHouse -10 years Ltd

16Page 16 A Snapshot of BK Group Plc

Key Facts CAGR* 2014 - BK Group Plc is a holding company with 4 subsidiaries: Bank of Kigali Plc, BK US$ million 2014 2015 2016 2017 2018 1H 19** 1H 19 General Insurance, BK TecHouse and BK Capital Ltd. The Group has 1,267 FRw/USD Period End rate 686.1 725.0 807.0 854.0 892.0 904.1 employees. Its largest subsidiary Bank of Kigali Plc is the leading bank in Rwanda by Total Assets 703.4 774.1 791.0 851.5 983.6 987.9 16.6% Net Loans 340.3 433.0 478.1 552.3 636.9 719.1 29.2% Total Assets, with 27.5% market share as at 30th June 2019. It offers a wide Client Deposits 473.1 530.6 519.2 533.0 596.4 610.2 14.2% spectrum of commercial banking services to Corporate, SME and Retail customers. Shareholders' Equity 130.5 136.9 134.4 143.7 218.3 225.6 22.8% Net Income 26.7 28.2 25.7 27.3 30.7 32.2 As at 30th June 2019 the Bank had: *CAGR figures are calculated on FRw Values 23,800 Corporate clients **Annualised 315,700 Retail clients Market Share - Banking Sector 2014 2015 2016 2017 2018 1H 19 68 branches Total Assets 26.8% 26.3% 26.8% 27.1% 28.4% 27.5% 96 ATMs and 1,891 POS Net Loans 23.1% 25.6% 27.5% 29.9% 31.9% 29.2% Client Deposits 26.3% 27.0% 27.4% 26.4% 27.1% 26.8% 1,416 Agents Shareholders' Equity 27.0% 25.0% 24.6% 26.8% 37.9% 36.2% Western Union, Money Gram services for International Transfers Branch Network Evolution

Growth in ATMs, POS Terminals and # of Current accounts

17Page 17 CORPORATE GOVERNANCE

18Page 18 Shareholding Structure & Corporate Governance

Shareholding Structure as at June 2019 Corporate Governance

The Board is composed of eight directors; 7 non-executive and Independent directors, 1 non-executive and non independent director that represent shareholder’s interests. The Board of Directors is appointed by the shareholders and approved by the and meets on a quarterly basis or more frequently as the business demands. The Board sets the strategy and retains full responsibility for the direction and control of the Bank as spelled out in the Memorandum and Articles of Association, the Board Charter and the BNR Corporate Governance guidelines. The Board sub-committees have clear TORs which underscore the scope and context of their mandate and performance as approved by the Board & the BNR Corporate Governance regulation. The Board receives detailed financial information and regular presentations from the management on the Bank’s business performance; this enables the Directors to make informed Free float- 60% decisions on governance, strategic, financial and operational issues.

19Page 19 Share Trading Performance

Analyst Coverage 30 June 2019 Current price, FRw 276 Market Cap, US$ mln 278 Free float 60% Recommendation: BUY Free float in US$ mln 166.5 Target Price: FRw 332 Average daily turnover in US$ mln 0.20 Last coverage report: May 2019 Common shares outstanding, mln shares 896.8 12-month high 300 12-month low 270 Recommendation: HOLD P/E 1H 2019 (based on current price) 6.85x Target Price: FRw 277 P/BV 1H 2019 (based on current price) 1.14x Last coverage report: September 2019 Dividend yield, 2018 (based on current price) 4.4% EPS, 1H 2019 32.5 Ticker Code BOK Recommendation: BUY Bloomberg BOK.RW Target Price: FRw 309 FRw/USD Exchange Rate of 898.3 as at 28th June 2019 (BNR Middle Rate) Last coverage report: May 2019 *Capital gains on RSE transactions are exempted from Capital Gains Tax Share Price Performance

20Page 20 BUSINESS OVERVIEW

21Page 21 Overview of the Loan Book

Gross Loan Portfolio Loan Book Segmentation

1H 2019 2018

Total Loan Book 1H 2019 Corporate Loan Book 1H 2019

22Page 22 Overview of Deposit Structure

Total Deposits Growth Deposits Segmentation

Structure of Deposits 1H 2019 Customer Deposits Concentration

Corporate: FRw 208.6 Bn Retail: FRw 165.1 Bn 1H 2019 FY 2018

* depositors with total balances above 5% of shareholders’ equity

23Page 23 Corporate Banking

Description Key Segments at 1H 2019

Clients include corporate, SMEs and NBAs* Corporate Loans: FRw 601.8 Bn Corporate Deposits: FRw 208.6 Bn Interest rates are in the 16.0% - 18.5% range. Key products: CAPEX loans: long-term loans for investment or expansion of the business Commercial mortgage loans: typical customer participation at 30% of property value, typical tenor of up to 15 years Working capital loans: financing business needs to an agreed limit for a short period (usually <1yr) Overdrafts Strategy: Increase exposure on top corporates with increase in Number of Corporate Accounts obligor limit through capital raise. Exploit cash management platform upgrade for sticky deposits and advantaged pricing for credit products. Hence, increasing both loans and deposits.​ Introduce new services, integrate client coverage Grow and consolidate market share Leverage superior lending capacity Focus on payroll services

Merez *NBAs (Non Business Associations) include Non-Profit Organizations, Petroleum Charities, Religious institutions, Educational Institutions, Cooperatives, etc.

24Page 24 Executing The Retail Strategy

25Page 25 Retail Banking

Description Retail Lending Retail Deposits The Bank’s retail business is primarily focused on mortgages and consumer Retail Loans: FRw 94.2 Bn Retail Deposits: FRw 165.1 Bn loans with notable share of salary backed overdrafts Key products: Mortgage loan: up to 15 years with typical customer participation at 30% of property value Vehicle loan: up to 5 years to individual clients Consumer loan: up to 12x monthly salary and 48 months Overdraft: up to 50% of monthly salary (normally repaid in 30-90 days) Other products include credit cards and asset based financing Strategy: Build sufficient channel capacity to be able to service 1,000,000+ clients by 2021 Through BKQUICK, a mobile solution towards savings and small loans, the Bank has been able to tap into the retail market competitively thus Retail Client Accounts increasing loans and deposits in the segment. BK recovered more than 50% of funds in BK Quick NPL in 2 months. Expand credit card/debit card offering to other providers

Our Products

Source: Bank of Kigali

26Page 26 Growing Our Distribution Network

Ubiquitous footprint Agency Banking

Agency Banking platform BK Yacu began operating in Nov 2012. Agency banking network of 1,416 operational agents as at 30th June 2019. Agents are able to perform cash in and cash out transactions, open customer accounts as well as send and receive money.

27Page 27 Expanding Our Self Service Products

Growing our Card Business Increasing our Mobile Product Offering Key Achievements Enhancing our mobile banking service Our mobile banking service is available through BK Mobile Issuing MasterCard and Visa line of products (USSD code) or BK App allows customers to perform the Launch of e-Commerce acquiring following transactions: Send money to any mobile phone user Over 75,000 MasterCards and 75,000 Visa cards are regardless of whether they operate a bank currently in circulation account or not; Union Pay and Diners Club Card Acquiring and Amex Purchasing prepaid TV or airtime, payment of utilities, taxes and Government e-services; ATM acquiring Check Balances and Bank information; Order cheque books; Funds transfers including Interbank;

28Page 28 IKOFI

IKOFI wallet is a universal digital financial solution targeting all Rwandans. The initial use case is for the Agricultural ecosystem, whereby Rwandan farmers and agro-dealers will be able to register using their NID or business certificates to start transacting with e-money and giving them the opportunity to create a Digital footprint while doing the very same things they do every day and join the formal banking sector thus having Access to Finance.

Farmers and Agro-dealers will have a fintech product tailored to suit their economic and personal lifestyles and which will open up a path into formal financial inclusion.

Payment of Agro Inputs will be much smoother with IKOFI has registered over 156,000 farmers and over minimal hustle by the Agro dealer. 1,200 registered agents; with target of at least 5,000 Both farmers and agro-dealers will build transaction agents and 500,000 customers by December 2019. history that will improve their credit worthiness A campaign is ongoing to significantly increase the A benefit of free P2P for all customer number of field agents (increased proximity) and to Farmers incentive of weekly promotion of 1M RWF close the gap on activated accounts. for a period of 30 weeks A benefit of free P2P for all customer Access to stock loans for eligible Agro dealers

Page 29 REVIEW OF FINANCIAL PERFORMANCE

30Page 30 Balance Sheet Highlights

Total Assets Net Loans and Advances

Customer Balances and Deposits Shareholder’s Equity

31Page 31 Asset Quality

Cost of Risk % Improving Coverage Ratio

NPLs by segment Manageable NPLs Ratio

32Page 32 Maturity Profile

Loans and Advances to Clients Customer Balances and Deposits

Significant Potential For Growth In Higher Yielding Assets Strong Capital And Liquidity Position

33Page 33 Income Statement Highlights

Total Operating Income Total Recurring Operating Costs Net Profit

Net Interest Margin % Cost/Income ratio Returns To Shareholders %

34Page 34 Competitive Landscape

Source: 1H 2019 Published Results

35Page 35 STRATEGIC OUTLOOK

36Page 36 Strategic Outlook Objectives Strategies Outcomes

BK as a group intends to offer under one brand all Number of customers served by the group to reach Become the Universal financial services to its customers 1,000,000 by 2021 Financial Services provider of Choice for all Widen BK group scope of products and services Strengthen BK Brand across all segments of the Rwandans population. Grow Retail business, transactional revenue, Insurance, and brokerage and other services.

Provide main services of BK Group at Branch level Maintain manageable NPLs at less than 5%. Customer service champions to convert customers into digital Reduce concentration, introduce automated scoring models for Control Risk, strengthen systems and consumers personal loans, salary advances and SMEs loans. revolutionize customer Operational and Effective Call Centre Operational risk - enhance internal and external compliance experience solve customers pain points and ensure smooth and enjoyable Develop a business intelligence function to support decision making. customer experience. Provide key indicators in an easy format on a day to day basis.

Automation of processes, Integration of BK group systems to ensure a IT system stabilised at 99% uptime of core banking systems and on all channels Compliance with global IT standards Digital Financial single view of customers, grow the number of digital consumers to at Institution Focus on 4 pillars: Connectivity, Automation, Decision-making, Innovation least 20% of BK Group customers Establish and maintain a centralized data base for the group Digitize Manual processes - Back office functions in BK Bank and BKGI to be digitized Develop new digital channels ( Improve the APP, Prioritize mobile payments Attract and retain best talent in the industry such as mVisa) Targeted training in IT, Operations, Business Intelligence and Risk People Develop online training tools to ensure all BK Staff are regularly trained on Strong performance management systems policies, regulations

37Page 37 BK Digital Transformation Strategy The new digital vision for Bank of Kigali is “Giving anyone, anywhere the best customer experience through digital”

Vision Giving anyone, anywhere, the best customer experience through digital

Wow the customer Improve profitability Diversify Group 1 million new Overall revenue retail and SME increase in Aspirations 70% NPS 28% customers profit before tax 50% increase in score non-funded income Themes A Connectivity B Automation C Advanced Analytics D Innovation

Theme . Highest rated mobile app . Top 10 customer journeys . Cross-selling - 15% . 1 million new retail and Aspirations and critical processes increase in revenue per SME customers from Bk . 70% NPS score in digitized end-to-end customer TecHouse digital customer satisfaction Consumers . 40% reduction in . 20% reduction in churn . 99% system uptime operating costs, 50+% rate . 50% increase in non- across all channels reduction in turnaround funded income times, 40% of sales done . 25% reduction in gross . 50% reduction in queue digitally NPL inflow times

People Risk & Compliance Systems Pillars Training Improve Risk Culture Revamp Core Infrastructure Way of working - Agile Regulatory compliance Data Architecture Performance Management

38Page 38 Digital Initiatives 26 digital initiatives will be delivered over the next 3 years (in no particular order)

Connectivity Automation (cont.) Advanced Analytics

Market leading retail digital platforms (across Term loan for corporate, bank, OFI and SME Customer value retention 1 mobile app, web, USSD) 11 customers 18 Market leading corporate banking and SME 19 Advanced early warning systems 2 Trade finance for corporate, bank, OFI and digital platform (web, mobile) 12 SME customers 20 Cross and up-selling existing customers Account servicing for corporate, bank, OFI Automation 13 and SME customers 21 1-2-1 pricing 3 Account opening for retail customers Asset finance for corporate, bank, OFI and 22 RM Workbench 14 SME customers Collections optimization 4 Payments and transfers for retail customers Cards for corporate, bank, OFI and SME 23 15 customers 5 Mortgages for retail customers Innovation 16 Foreign exchange and money markets for 6 Credit cards for retail customers corporate, bank, OFI and SME customers 24 Agriculture ecosystem 7 Personal loans for retail customers 17 Reconciliation 25 SME ecosystem (incl. education) 8 Account servicing for retail customers 26 Payment ecosystem Account opening for corporate, Bank, OFI and 9 SME customers Cash management for corporate, Bank, OFI 10 and SME customers

Page 39 39 BK Insurance Strategy Plan

BKGI Designed Strategic Objectives

Vision To be a leading provider of innovative, high quality Insurance services.

Staff Up scaling, Profitability: 3Bn Customer Centricity. Enhance Governance Business Growth. Efficiency in Cost Motivation & Overall by 2023. Become a Wow & Controls 15% Annual Turn Management. Retention Aspirations Over. Expense Ratio of Company for customers. 30%.

Themes A Determine Growth Path B Costs Control C Key Structures operational D Skills uplift

Theme . Identify Target Markets . Agreements with Garages & . Credible BOD with governance . Design development plan for Aspirations Spare Parts Shops on prices & Insurance Knowledge key personnel . Design Relevant Products . Prompt investigations on claims . ERM in place with a fully . Fast Track teams with a long . Determine Distribution channels . Outsource skilled Loss functioning Risk Unit term orientation Assessors to mitigate valuation . Enhance Underwriting Skills . Empowerment of key personnel . 90% Retention of Customers risk . Risk surveys for big Risks . Maintain 30% ration of . Enhance Internal Audit Unit . Establish staff recognition . Enhance Banc-assurance operating costs . Determine Risk Apetite schemes . Automate process framework . Clear growth path . Hire Insurance Agents . Digitise channels. Motor & Fire . Management Performance . Staff satisfaction surveys offered digitally Reviews . Meticulous Claims Analysis . Own Risk Registers & train Risk . Prudent risk assessment Champions.

Foundational Key Distribution Channels: Design a Customer Service Charter Issues Direct Sales Put in place Service Delivery Standards Intermediaries Encourage customer Feedback People Digital Channels offerings Design communication strategy Leveraging Banc-Assurance Improve product packaging/offering

40Page 40 BK TecHouse Strategy Plan

The 3 years strategy vision is “ Creating innovative and digital solutions that bring value to BK Group Plc.”

Vision Create innovative and digital solutions that bring value to BK Group Plc.

Scale up existing systems Improve the company profitability Enhance governance and internal Overall and keep increasing the through the Big data Business control systems Aspirations digital users up to 2,000,000 with a positive EBITDA starting from 2020

Themes A Innovative Digital Platforms B Growth Path C Meet the operational best practices Agriculture . Design Big Data Business Module Theme and start monetizing developed . Strong Internal control system; Aspirations . Create new digital solutions that Digital Platforms through below enable BK Group to create digital products portfolio: . Clear KPI management framework & business opportunity through ‒ Data Access Implement the Performance management digital offering in Agriculture; ‒ Software As a Service Framework ; ‒ Data Analytics Education . Maximize profitability and cash . Efficiency in cost management ; . Create new digital solutions that flow while maintaining annual enable BK Group to create business growth to 20%-25% business opportunity through digital offering in Education Sector;

Foundational issues Public Private Partnership with Regulatory and Policy framework on Strong operational structure MINAGRI, RAB & NAEB the Big Data

41Page 41 BK Capital Strategy Plan BK Capital’s mission is to serve as a trusted partner to its clients by responsibly providing financial services and advisory to its clients’ finances

Vision To be the most trusted financial partner offering Innovative financial solutions

Position BK Capital as the Grow Assets Under Adopt flexible financing and Develop teams with leading Advisory & Fund Management to fundraising models, beyond expertise and build a track Overall Manager in Rwanda $50 Million by capital markets to source record of successful deal Aspirations and a major player in 2023 additional capital for execution East Africa opportunities

Wealth & Fund Themes A Strategic Positioning B C Financing & Fundraising D Human Capital Management

Theme . Develop strategic partnerships Develop a diverse suite of Develop a variety of capital raising . Build the human capital that will Aspirations with brokers, fund houses and products: channels through: meet the long term objectives of financial solutions providers • Income fund for sale to local being the “benchmark” in the servicing clients across Africa and International Investors • Private Placements market

. Develop Innovative products for • Exchange Traded Funds (ETF) • Mergers & Acquisitions (M&A) . Develop Risk Management the Rwandan and regional with Investments in a basket of Policies concerning good market securities • Private Equity market practices

. Develop systems & processes • East Africa Equity & Fixed Capital Market Channels through: . Develop In-house proprietary across the products we offer Income fund attracting reporting and Investment International & local Investors to • Corporate Bonds management tools . Market Reports and research focus on blue chips stocks Insights that will drive decision • Etc… • Initial Public Offers (IPOs) making

Foundational Issues Strategic Partnerships Systems & Processes People

42Page 42 Management Targets 2019 - 2021

Loan Growth 20% - 25% Deposit Growth 20% - 25%

Net interest Margin 10.5% - 11% Non Funded Income 30% - 40% Cost to Income Ratio 40% - 45%

Return on Equity 18% - 25% Return on Assets 3.5% - 4%

Cost of Risk 1.5% - 2% NPL 4% - 5%

43Page 43 Contact Information

For further information please contact:

Marc Holtzman Dr. Diane Karusisi Chairman of the Board Chief Executive Officer Email: [email protected] Email: [email protected] Mobile: +250 788 143 410 Mobile: +250 788 143 410

Emmanuel Batanage Christa Sangwa Company Secretary Investor Relations Manager Email: [email protected] Email: [email protected] Mobile: +250 788 143 506 Mobile: +250 788 143 565

Visit our website, www.bk.rw to access our Investor Presentations, Press Releases and Annual Reports. Telephone number: +250 788 143 000 Address: KN4 Avenue, PO Box 175, Kigali, Rwanda.

Page 44 Disclaimer

This presentation contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to the implementation of strategic initiatives and other statements relating to our business development and financial performance.

While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, (1) general market, macroeconomic, government policies, legislative and regulatory trends, (2) movements in local and international currency exchange rates, interest rates and securities markets, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties and developments in the markets in which they operate, (6) management changes and changes to the Bank’s structure and (7) other key factors that we have indicated could adversely affect our business and financial performance, which are contained elsewhere in this presentation and in our past and future filings and reports, including those filed with the National Bank of Rwanda and the Rwanda Stock Exchange.

We are under no obligation (and expressly disclaim any such obligations to) update or alter our forward-looking statements whether as a result of new information, future events, or otherwise.

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